Understanding the Tax Consequences of Condemnation

When a government agency or other entity with the power of eminent domain acquires or condemns private property, the private owner is entitled to “just compensation” for the value of the property taken. This compensation – or at least the majority of it – is essentially paid as the purchase price for the condemned property. Eminent domain involves the transfer of real estate title in exchange for the payment of compensation which the Internal Revenue Code (the “Code”) generally treats as an ordinary taxable sale of property.

The Owners’ Counsel of America is pleased to announce that Manhattan eminent domain lawyer Michael Rikon, the New York representative to OCA, recently received a CRE® designation from the Counselors of Real Estate®. Mr. Rikon, a partner at Manhattan-based Goldstein, Rikon, Rikon & Houghton, P.C, has practiced law in New York since his admission to the Bar in 1969. Of the more than 1,100 CREs worldwide, Mike is one of the approximately 50 who are practicing attorneys. Mike Rikon entered private practice in 1980 and has since focused his practice on representing private property owners in eminent domain and real estate matters across New York state. Goldstein, Rikon, Rikon & Houghton, P.C limits its practice to eminent domain and condemnation law assisting landowners throughout the state of New York. Mike frequently lectures on topics related to eminent domain, just compensation and property rights. His articles on condemnation and real property law are published in the New York Law Journal, Practical Real Estate Lawyer and other legal and scholarly journals. He also regularly contributes to his firm’s blog “Bulldozers at Your Doorstep.” More about Mike’s professional experience is available on his OCA profile page and at www.grrhpc.com. Founded in 1953, the Counselors of Real Estate® is the membership organization established exclusively for real estate advisors who provide intelligent, unbiased, and trusted advice for a client or employer. Membership in The Counselors of Real Estate is on an invitation-only basis after a thorough review process. CREs come from a wide array of professional backgrounds-from valuation, consulting, law, brokerage and asset management to development, investment, lending […]

Owners’ Counsel of America member-attorneys are dedicated to assisting private property owners defend their property rights when those rights are threatened by government intrusion or overreach. We realize that many of terms we discuss here and the concepts involved in eminent domain law are complex and can be confusing. To shed some light on this “dark corner of the law” we have answered some of the frequently asked questions landowners may have relating to eminent domain and the condemnation process here and here. In this article, we discuss the differences between eminent domain and inverse condemnation. Eminent Domain vs. Inverse Condemnation Eminent Domain There are two types of government acquisition or “taking” of private property. One form of property acquisition includes the government’s exercise of its eminent domain power to force the sale of private property for a public project or use. Eminent Domain – also referred to as “condemnation” – is the power of local, state or federal government agencies to take private property for public use provided the owner is paid just compensation. Sometimes, private corporations such as oil and gas companies, railroads or redevelopment authorities may be granted eminent domain power to construct projects providing a benefit to the public. The use of eminent domain power to take property is referred to by many terms and varies from state to state as well as internationally. The acquisition may be referred to as a “condemnation” or “direct condemnation,” “expropriation,” “appropriation” or simply a “direct taking.” In a direct condemnation or direct taking scenario, the government agency or other entity using the power […]

OCA is pleased to announce that Alabama real estate and condemnation lawyer, Casey Pipes, was recently selected for membership in the association. Mr. Pipes will succeed his partner, Warren C. Herlong, Jr., as the Alabama member of OCA. Warren, a charter member of OCA and former Director on OCA’s Board of Directors from 2013 to 2016, has been named as an Emeritus Member of the association.

Recently, state and federal lawmakers from across the country have introduced a number of legislative changes in the areas of private property rights and eminent domain. In this article, we highlight some of the latest (potential) legislative developments.

If you received a condemnation notice or a notice that your property may be needed for a public project, it means that a federal, state or local government authority is seeking to acquire your property (or an interest in your property) using the power of eminent domain. Eminent domain is the power granted to the government and governmental agencies to seize private property for public use. This power is not absolute and as a property owner, you have a number of important legal rights. However, protecting these rights can be a challenge.

Advocates for Private Property Owners Across the Country

OCA’s network of attorneys not only represent landowners in courts throughout the country, but also advocate for the rights of private property owners. From lecturing on property rights and being active in their local communities to filing amicus briefs with the U.S. Supreme Court, OCA’s eminent domain lawyers are committed to advancing the rights of private property owners nationwide. If you are concerned about protecting your property rights, contact Owners’ Counsel of America today.